Dallas Fed Survey Hits 10-Month Low, Cites Washington Uncertainty

Business conditions in Texas-area manufacturing worsened sharply this month amid questions about future government policy although production, orders and employment stayed positive, according to a report released Monday by the Federal Reserve Bank of Dallas.

The bank said its general business activity index plunged to -13.2 in July from 5.8 in June. July’s is the weakest number in 10 months. The company outlook index fell to 1.6 from 5.5. Readings below 0 indicate contraction, and positive numbers indicate expanding activity.

The Dallas Fed survey is the last of the regional Fed factory reports. In general, the other surveys show a weakening in factory activity, led by falling orders.